11.01.17
Following its recent acquisition of baby food formula maker Mead Johnson, Reckitt Benckiser will separate its business into two separate divisions—a home care group and health care group.
Current CEO Rakesh Kapoor will continue to oversee the entire company and will also head up the new consumer-health division. The hygiene business, which includes Lysol, will be under the leadership of current Europe and US boss Rob De Groot.
The company maintains that the move is being made to focus efforts in two distinct businesses. According to Kapoor, separate P&Ls will increase accountability, and investors “should not read it in any other way,” but cynics can’t help notice that the timing of the announcement came right after Pfizer said it might sell its $14 billion consumer healthcare unit. If those observers are right, RB could make a bid for the Pfizer business and sell-off its home care unit.
Current CEO Rakesh Kapoor will continue to oversee the entire company and will also head up the new consumer-health division. The hygiene business, which includes Lysol, will be under the leadership of current Europe and US boss Rob De Groot.
The company maintains that the move is being made to focus efforts in two distinct businesses. According to Kapoor, separate P&Ls will increase accountability, and investors “should not read it in any other way,” but cynics can’t help notice that the timing of the announcement came right after Pfizer said it might sell its $14 billion consumer healthcare unit. If those observers are right, RB could make a bid for the Pfizer business and sell-off its home care unit.